Suppose you deposit $1,000 in one year, $2,000 in two years, and $4,000 in three years. Assume

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Suppose you deposit $1,000 in one year, $2,000 in two years, and $4,000 in three years. Assume a 4 percent interest rate throughout.

a. How much will you have in five years?

b. Suppose you plan to withdraw $1,500 in four years and there is no penalty for early withdrawal. How much will you have in five years?

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Finance for Executives Managing for Value Creation

ISBN: 978-0538751346

4th edition

Authors: Gabriel Hawawini, Claude Viallet

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Question Posted: Mar 27, 2015 09:56 AM

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Suppose you deposit $1,000 in one year, $2,000 in two years, and $4,000 in three years. Assume

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a b Time line Let FV Samount Year N 2 1000 2000 ...View the full answer

Finance for Executives Managing for Value Creation

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